Course Title:

ADVERTISING AND SALES PROMOTION

Student Name:
NAUMAN BASHIR

Roll No:
MMKT-IAS-50-R-F19

Course instructor:
SYED KASHIF AHMAD

Program:
MASTERS OF MARKETING

Session:
2019-21
Q1. (Marks 15)

Why is it important for the “Marketer” to understand and appreciate all the various
integrated marketing communication tools and how they can be used effectively? Explain
in detail with appropriate examples.

Answer

IMC tool

Integrated marketing communication is a tool which is used for promotional activities which is
surrounded by conveying consistent, valid and reliable message to the market so that positive
voice over the promotional activities could be achieved. IMC is amid at the consolidation of the
message across the media channels which are being incorporated at amid promotional
campaigns.

Reasons for understanding the IMC tools for marketer

There are number of reasons which are necessary to understand for the marketers which can pay
them highly in promoting their products/services are following,

1) To lower down the mental variation of the targeted market by providing integrated
information across the media channels which is being used,
2) Every person needs unique, consistent and clear message because its Psychological need
of the human being to be clear about the message which is being disseminated.
3) Internal and external clarity of information becomes the loyal and promising message
which fetches the larger spectrum attention.
4) Marketers know that incongruence in the message can create a major hurdle in the
delivery of the objective message.
5) Print media is also used for drawing attention of the daily readers of the newspapers.
6) Social media promotions are cost effective, which is the prime objective of the every
marketer to put less and get more out of the activities which they perform.
7) Sponsorships are more cost effective to draw the attention of the masses.
8) It’s important to understand integrated marketing communication tool because it is value
creating method for the companies.
9) Marketers are prime foci of the information communication so that’s why it’s very
important for the marketers to understand it foe the greater validity of the communication
related to products for which they are hired.

How we can use IMC effectively

Process which would be considered for using IMC model for effectively for delivering promising
information to cater the attention of the market.

1) Watchdog establishment which can oversee the process of the communication across the
outflow of the information
2) Through proper organizing information after cross consultation go up for the delivery of
the information
3) There must be a central hub for the cross consultation of the validity of the information

Examples related to IMC applications

Example 1

We launched a company by the name of FORx productions so after launching the company
we went over to promote it through a number of media channels such as DAWN newspapers,
we hired a team of experts of the social media which charged over to charge their obligation
to convey the information clearly and consistently across the social media app such as
facebook, insta and twitter. And there is again a channel established to oversee the all major
activities ofs the media channels so that the validation of the information could be possible
and fruitful.

Example 2

1) Shezan has been using IMC tools to fill up the gap between the original knowledge and
the perception of the market related to the Shezan image
Concluding remarks

IMC tools are very important to convey the clear and right message to the market for fetching
the attention of the potential customers. So, simply integrated marketing communication is
effective in conveying the right, valid message across the spectrum of the media channels. In
the hypothetical case I highlighted the application of the IMC tool which is fruitful for
establishing the perceptions of the market which is being targeted.

Q2. (Marks 15)

Discuss the role of specialized marketing communication organizations such as sales

promotion, public relations, and digital agencies in the IMC process. Why are marketers
likely to use these specialists rather than a full-service agency?
Answer

IMC : -Integrated marketing communication is the concept of optimizing the marketing

communication approaches to increase the branding in the market. IMC is known as integrated
marketing communication. IMC approach has effective results in terms of branding, awareness,
customer impact, and meeting/exceeding marketing purpose in the target market segments. The
reason of success of IMC is that no single mode of marketing is sufficient to drive or lead the
marketing to the required level. Thus the integrated option is the better option for marketing.

In the IMC the role of specialized organizations is effective to meet or achieve the target results.

Sales Promotion:  Sales promotions are marketing activities that aim to temporarily boost sales
of a product or service by adding to the basic value offered, such as “buy one get one free” offers
to consumers or “buy twelve cases and get a 10 percent discount” to wholesalers, retailers, or
distributors. This function is specialized in promoting the sales only. The benefit of having the
specialized function is that we can drive the dedicated efforts in the particular segment/process to
achieve the target business results in that stream.. Thus sales promotion will be able to drive
specialized sales improvement efforts /tactics/ approaches to improve the sales. The specialized
function has the highest skilled approaches and knowledge to deliver better results.

Public Relation:  The purpose of public relations is to create goodwill between an organization
(or the things it promotes) and the “public” or target segments it is trying to reach. This happens
through unpaid or earned promotional opportunities: articles, press and media coverage, winning
awards, giving presentations at conferences and events, and otherwise getting favorable attention
through vehicles not paid for by the sponsor This is the function specialized in developing the
public relations. Thus this function can achieve higher public relation to the organization than
non-specialized function. Public relation is a complex process and needs to be handled properly,
so that the business can achieve the desired benet from it. Thus specialized function is needed for
it.

Digital Agencies: Digital marketing covers a lot of ground, from Web sites to search-engine,
content, and social media marketing. Digital marketing tools and techniques evolve rapidly with
technological advances, but this umbrella term covers all of the ways in which digital
technologies are used to market and sell organizations, products, services, ideas, and
experiences. This is the function which is specialized in digital servicing. Thus it will apply best
digital skills and approaches for achieving IMC targets for the organization. The other non-
specialized function may not be able to achieve it.

Specialized services are better than overall marketing agency, as the overall marketing agency
may be able to support for all requirements, but may not penetrate the concept effectively and
much benet for the organization. Thus in order to have higher benets , better market penetration,
higher branding impacts, the organizations will prefer to use specialized services than overall
agencies.

Q3. (Marks 10)

Discuss the reasons why advertising agencies lose accounts. Find an example of a company
that changed advertising agencies and identify the factors that led the company to switch to
another agency.

Answer
It is possible for an agency to have varying levels of performance. The type of services, the range
of services, etc, differ from one agency to another for different clients. Various agencies could be
paid in terms of commissions, percentage charges or in some form of fee arrangement.
There are numerous reasons for advertising agencies to lose accounts. Some of the reasons are
listed below:
1) It is possible for some companies to switch agencies in search of better creativity.
2) There might be a decline in the quality of the service provided by the agency.
3) Reorganizations could happen in the top management of the company that could result in
changes to the linked advertising agencies.
4) Failure to communicate properly between the agency and the client could result in
agencies losing clients.
5) There might be unrealistic demands made by the client that could result in conflicts
leading to companies shifting from one agency to another.
6) Changes in marketing or advertising strategies could also result in advertising agencies to
lose accounts.
7) Mergers and acquisitions happening at the corporate level could result in conflicts that
might cause agencies to lose accounts.
8) Differences in compensation strategies could result in disagreements and conflicts
leading to gaps between the agency and the client.
9) If a company plans to consolidate its advertising and marketing efforts in one shop, it
might result in advertising agencies losing accounts.
10) In an attempt to obtain more control over their marketing communications, some
companies choose to reduce the number of agencies they work with, therefore leading to
advertising agencies losing accounts.

Company A is one such company that changed its advertising agency. The factors that lead the
company to switch from one agency to another are listed below: • The top management of the
company was restructured to include an external group of people apart from the already existing
co-owners. • The reshuffling at the higher level led to changes in the existing policies resulting in
changes in its advertising strategy. • The new members inducted into the top management felt the
need to improve the performance of the agencies, resulting in shifting from one advertising
agency to another.

Q4. (Marks 10)

Consumers experience different forms of “Problem Recognition” .Explain each type of

“Problem Recognition” and give an example of purchase of this type.

Answer

Consumers experience various types of issue acknowledgment. When settling on a buy choice,
the customer is pushed to various phases of the choice interaction. This includes a few interior
mental cycles, for example, inspiration, disposition arrangement, learning, discernment, and
reconciliation.

Types of Problem Recognition:

1. Natural Depletion:

Consumer’s needs are different from one another, there is something that everybody use in daily
life and they purchase everyday it can be a shampoo , a chocolate or a meal.

Example:

A customer favorite soap is lux and he is running low on its favorites.

2. Dissatisfaction

Dissatisfaction occurs when consumer is dissatisfied with a product or services. Most of the
consumers dissatisfied with most of the products given by the agencies. Dissatisfaction faced by
every consumers. For overcome this every consumer seek different options from a product. So
company should recognize this problem and make suitable changes that are needed

Example:

A consumer is dissatisfied with a Product A of a certain company so he would seek that he

would change the company or the product.

3. Consumers want and need:

The Consumers wants and needs are different, sometimes consumer’s wants and needs are not
satisfied by the company. The company should recognize the problem and entertain consumers
so that their needs should be satisfied.

Example:

A consumer needs are not satisfy by the products given by the company so he could not satisfy in
buying the product.

4. Problem in decision making:

Consumer faced decision making problem, everyday consumer ask the question to himself what
should he buy and what not, which is the best option for the certain need and which is not, will
this product serve the purpose or not. The company should identify what he should do to help
consumers in resolving this decision making problem.

Example:

A consumer did not decide that which type of shampoo he would choose from a certain company
and which should be the best option.

5. Financial problems:

Most of the consumers faced financial problems, they cannot afford products from premium
brands. They have to rely on the products that have cost that’s why they don’t really depend
upon quality.

Example:

A consumer cannot buy clothes from the brands like Gul Ahmed, Safaire, Khadii etc so that
consumer have to rely on clothes from local brands.

6. Information related problems:

The consumers sometimes remain in dark with the information given in related with the
products. Companies should inform their consumers well in this regard.

Example:

A consumer not know about the details related to its qualities i.e., Sensodine Tooothpaste

7. Motivation related problems:

Sometimes consumers have motivation related problems as they don’t motivated enough to buy a
certain product even if the product fulfill the requirements he/she needed. Company should
research what it should do to attract the consumers i.e., changing the product design.

Example:

A consumer is not feel like purchasing a certain product even its fulfill the requirements i.e, A hp
laptop.

Q5. (Marks 10)

Please explain the various “Research Methodologies” to examine consumer’s behaviors.

What are the advantages and disadvantages of each. Give examples.

Answer

There are enormous types of researches which help us in identifying, organizing, analyzing,
interpreting and reporting the underlying facts related to any social phenomenon or social
happening which in turn does so much in formulating, assessing and promotional activities of the
organization which owe this approach of collection of data.

There are two major types of research under which all other sub types of researches lies, so the
major types are following,

1) Applied research
Applied research is a type of research in which we as researchers observe very closely the social
dynamics, consumer’s behaviors dynamics, exacerbating factors of consumption of the particular
product or services, social axioms and the on ground reality which has much to do with
formulation of the plan of execution to meet the all needs and wants of the consumers which are
well embodied in the attitudes of the consumers. So applied research is particularly focused on
solving the current or contemporary problems.

2) General research
General research is a form of research which is amid at to formulate the theories and axioms
related to study consumer behavior which is beneficial for adding the knowledge to the existing
strata of knowledge which provides verbatim to solve the future problems. So we can use this
research to formulate theories related to wide spread consumer behaviors consumption habits and
variations of the consumption.

Subtypes of researches which we can use to assess and examine the consumer behavior are
following,

1) Ethnographic research
2) Field research
3) Focused group research
4) Qualitative research
5) Quantitative research
6) Retro cohort research
7) Experimental research
8) Questionnaire research
Questionnaire

Advantages 
• Open ended questions have the advantage that the respondent is not limited to the options
listed.
• Respondents are not being influenced by seeing a list of responses.  
Disadvantages
• Open-ended questions are often skipped by respondents.
• Coding of open-ended questions can be quite a challenge. 

Survey

Advantages
• Mail surveys are relatively inexpensive.
• Phone-surveys get somewhat higher response rates.

Disadvantages
• Mail survey response rates are typically quite low from 5-20%.

 In phone-surveys not many questions can be asked because many answer options have to
be repeated
Focus groups

Advantages

• Flexible method to gauge consumer response to entirely new products and questions.
• Issues of interest to respondents can be identified without specific prior knowledge.
Disadvantages
• they represent small sample sizes. 
Q6. (Marks 10)

Discuss the Pros and Cons of using an “In-House Advertising Agency”. What are some of
the reasons why companies might change from using “In-House Advertising Agency” and
hire an “Out-Side Advertising Agency”?

In-House Advertising Agency

In-house agency is the brand’s internal team that focuses on the advertising and marketing of
their product or service. The in-house agency is responsible for all of a brand’s marketing and
advertising tasks including:

 Advertising campaigns
 Brand consistency
 Brand management
 Brand messaging
 Brand storytelling
 Content marketing
 Community management
 Digital marketing
 Direct marketing
 Social media marketing

There are numerous pros and cons of using In-House advertising agency which are as follows:

Pro’s and Con’s

Cost
The cost of running In-House promotional activities are generally lower than the Out-side
advertising agencies. When you are working with an agency, not only are you paying for their
staff, but their overheads and a mark-up so they can make a profit.
This is not the case with an in-house agency, meaning that the cost of running in-house
advertising is generally lower. The mark-up you’d pay to an agency can instead be invested in
talent and advertising spend.
With that being said, it can be more difficult to manage inflating costs when running your own
in-house team; sometimes it is easier agreeing on a set fee with an agency that is easier to
forecast over time.
Productivity
When you are managing an in-house team for the advertising of your brand, the your advertising
team will be highly focused to the same goal which is implement by the company. So, this
targeted focused team can cause increased in productivity. Agency staff is often required to split
their time across multiple clients and campaigns. While this helps with knowledge-sharing and
experience, it can mean that your advertising campaigns don’t receive the proper care and
attention you might like.

Control
When you are using in house advertising agency for advertising of your brand you can actively
control the team work, It can sometimes be difficult to exercise control over your marketing
activities when these are spread across multiple agencies and departments.
Managing everything in-house means complete control over your advertising spend, marketing
activities and strategy.

Communication
An inhouse agency will likely work out of the same offices, with all the same lines of
communication that exist within your business, This can make it easier to conduct internal
meetings and prevent any potential breakdowns in communication that may lead to marketing
issues

Company Values
Employing an in-house advertising group implies taking in a group of individuals who are
completely working inside the organization – and who in this manner comprehend organization
esteems, culture and reasoning. Office staff will likewise have a superior comprehension of your
item and administration than would be conceivable with an outer expert. This will be reflected in
the quality and execution of your advertising efforts.
This ought to likewise make it simpler to propel your group, who will probably feel a superior
feeling of commitment to the brand than if they were recruited as an outside organization.

No C onflict Of In terest
At the point when you re-appropriate work to an outside office, the office may have existing
associations with one of your rivals (or they may set up new connections without your knowing).

Typically organizations will use separate staff to forestall any get over, however it's hard to
legitimize working with an office where they might be an irreconcilable circumstance.
Taking your organization exercises in-house can nullify any contentions and help to guarantee
that the group chipping away at your record is completely committed to the end-cause.

Pulling in Talent
It could be something of a speculation however there is a pattern of more experienced specialists
moving from organization to in-house jobs.
On the off chance that you are a lofty, very much perceived brand then you may think that it’s
somewhat simpler to pull in the best ability to your business. This ability is additionally then
claimed inside your business – as opposed to being leased briefly.

Be that as it may, before you give the green light to moving everything in-house, you should
initially consider…

Consequences

No E conomies of S cale
Huge offices profit by economies of scale, including lower costs for industry apparatuses,
publicizing expenses and business overheads.
These reserve funds can at times imply that working with an office is in reality more practical
than taking the administrations inhouse.

No Sh ared Learning
Inhouse groups regularly work in-storehouse for you. While this may have efficiency benefits, it
can bring about limited focus and it's simple for your groups to get protected from industry
advancements.
On the off chance that you do take your advertising exercises inhouse, you need to ensure that
learning and advancement is a ceaseless thought for your office group.

R estricted Sk ills ets

Regardless of whether you employ probably the best competitors in your industry, it's
improbable you will have the option to coordinate the abundance of abilities, assets and
experience accessible to an enormous publicizing office. The benefit of an organization
accomplice is in the amount of their parts – the scope of controls they can unite as a lucid help.
You should consider cautiously what abilities and experience you're probably going to miss by
bringing at least one promoting directs in-house.

Why companies hire outside advertising agencies?

1. Agencies have some of the most talented people on the planet working within them.
Often client organizations can't recruit and hire these people because "creatives" want
to work on many brands not just one.
2. he best platforms for hiring remote teams minimize the time to hire and maximize
consistency
3. Clients need agencies expertise that they don't have internally (i.e. how to use the
latest technology, what media to buy, how to create a breakthrough idea).
4. Agencies are generally more creative than their clients, and are hired for fresh
perspectives not able to be envisioned inside a large corporation.
5. Clients have the luxury of money, but not the luxury of time. They hire agencies to
accelerate their go-to-market plans for a brand.